$NZ firm

Press, 31 August 1985, Page 23

$NZ firm

PA Wellington The New Zealand dollar remained firmly buoyed on the foreign exchange market yesterday by high domestic interest rates and tight liquidity, according to dealers. It closed slightly stronger at $U50.5400/50, compared with its 5U50.5380/95 opening, reaching a peak midmorning at $U50.5440/55. Dealers said the market was thin and movements were exaggerated by transactions which went through. Funding problems put great pressure on forward cover rates in the morning, but this eased. While interest rates of 27 per cent were charged in the money market, forward cover for the same period reached 35 per cent.

The Reserve Bank tradeweighted exchange rate index was at 69.6 at 3 p.m.,

The NZ dollar was worth 77.13 c Aust., 38.83 p, 128.83 yen and 1.51 marks late yesterday. The United States dollar closed unchanged at 2.7800/ 10 marks from its opening, after gaining one pfennig overnight in New York. Sterling was slightly stronger at $U51.3980/90,

compared with its $U51.3970/80 opening, and the Australian dollar closed slightly stronger at $U50.7035/42, compared with its $U50.7025/32 opening.

In New York, the dollar closed higher at 2.7810/40 marks, up a pfennig from the previous day’s close of 2.7710/25. There was little, if any, rand trading in New York as traders awaited the results of the visit of the Governor of South Africa’s Reserve Bank, Mr Gerhard de Kock, to London and Washington.

In Wellington the value of the New Zealand dollar yesterday morning, compared with its value immediately before it was floated in March, was:

March 1 Aug 30 U.S. dol. 44c 53.5 c Sterling 41.15 p 38.24 p Canada 61.2 c 73.1 c France 4.49ffr 4.54ffr H.K. $3.43 $4.16 Japan 114 yen 126 yen Nethlnds 1.66 g 1.67 g S’pore 99c $1.20 Switzlnd I.26sfr I.2lsfr Germany 1.47dm 1.48dm Aust 62.4 c 76.3 c

The selling rates are those quoted by the Bank of New Zealand.